These Midwestern Cities Are Booming with Opportunities for REIs

Disclaimer: PropStream does not offer investing advice and/or profit promises. This article is for educational purposes only. We recommend doing your due diligence and/or consulting financial professionals before investing in Midwestern cities.

While coastal markets tend to claim the spotlight in real estate, the Midwest offers equal, if not better, opportunities for investors. In fact, a recent report named the Midwest as one of the hottest housing markets of 2024.

Read on to learn about the top five Midwestern cities and why you should consider investing in America’s Heartland.

1. Des Moines, Iowa

Des Moines is the capital and most populous city of Iowa. With 210,381 residents and over 6,500 local businesses, the city boasts a thriving economy supported by its major industries: insurance, government, manufacturing, and healthcare. Additionally, the unemployment rate in July 2024 was 3.3% (lower than the 4.5% national average).

On the housing front, the median home price in Des Moines reached a new high of $300,000 in May 2024 (up from $193,000 in January 2019), and the median days on market was 60 in August. Meanwhile, the average rent is $1040.

Considering the national median home price ($412,300) and average rent ($1,739), Des Moines offers an attractive cost of living. According to the Missouri Economic Research and Information Center, Iowa ranks eighth for the lowest cost of living among U.S. states.

Plus, Des Moines attracts many students with its major universities, including Drake University, Des Moines University, and Grand View University.

2. Indianapolis, Indiana

As one of the few U.S. cities where four interstate highways meet, Indianapolis is known as the “Crossroads of America.” It’s also the capital and most populous city in Indiana with 879,293 residents and a GDP of $156.532 billion. According to a recent report, the metro also tops Midwestern cities in three-year GDP growth.

Top industries in Indianapolis include logistics, manufacturing, information technology (IT), life sciences, and agribusiness, and some of the city’s top employers are Eli Lilly, Cummins, and Salesforce.

Meanwhile, median home prices in Indianapolis continue to climb. From Q1 2023 to Q2 2024, they jumped 8%, the 15th-highest increase in the nation (reaching $245,000 in April). In August, the median days on market was 43, and the average rent was $1,221.

At the same time, Indiana ranks ninth for the lowest cost of living among U.S. states, making Indianapolis an attractive place to live and work. Some also come to study at the University of Indianapolis and Butler University.

3. Columbus, Ohio

The capital and most populous city in Ohio, Columbus has a population of 913,175, and it’s still growing. In 2023, the city was named the fastest-growing big city in America. 

Part of what attracts residents is the city’s thriving economy. Companies headquartered in Columbus include Nationwide, Huntington, DSW, Express, Wendy’s, and Big Lots. Furthermore, Intel recently announced plans to invest in the region with the construction of two new leading-edge chip factories.

According to a recent report, Columbus will also have one of the hottest housing markets in 2024, driven by strong demand, steady home values, and a growing number of homeowners and job growth. The projected typical home value is $301,138, and the median days on market is 36. Meanwhile, the average rent is $1,283.

While the cost of living in Ohio is a bit higher than other states in this article, it still ranks 22nd out of all 50 states. In addition, Columbus is home to Ohio State University, one of the largest and most prestigious public universities nationwide.

4. Kansas City, Missouri

Located on Missouri’s western border with Kansas, Kansas City has a population of 510,704. Interestingly, it also has over 200 fountains, making it one of the cities with the most fountains in the world.

More importantly, many Fortune 1,000 companies operate in the area, including AMC, American Century, Black & Veatch, and Burns & McDonnell, among others. Some recent expansions into the city were made by Carvana, Google, and Eastern Airlines.

Meanwhile, a recent report shows that Kansas City homes are some of the fastest-selling in the country. Specifically, it takes about four days for homes to sell (compared to the U.S. average of two weeks). The typical house in Kansas City is worth just over $300,000, up over 5% since last year, and the average rent is $1,296.

In addition, the cost of living in Missouri is the seventh lowest among U.S. states. Other attractions include the University of Missouri-Kansas City and Rockhurst University.

5. Omaha, Nebraska

Omaha is the most populous city in Nebraska with 483,335 residents. It’s also home to four Fortune 500 companies: Kiewit Corporation, Mutual of Omaha, Union Pacific Corporation, and Berkshire Hathaway, the investment firm of billionaire Warren Buffett. Furthermore, Omaha has a relatively low unemployment rate of 3.2%.

In 2023, Omaha was projected to be the third-best performing housing market nationwide, registering a 6.4% appreciation rate from Q3 2022 to Q3 2023. Meanwhile, the median days on market in August was 43, and the average rent was $1,238. The cost of living in Nebraska ranks 21st lowest out of all 50 states.

Finally, Omaha has many other attractions, including economic stability and a diverse range of industries: agriculture, food processing, insurance, transportation, healthcare, and education.

Invest in Midwest Real Estate with PropStream

Ready to invest in one of these booming Midwestern cities? You’re in the right place.

Our database of over 155 million nationwide properties and 120+ search filters can help you find the right property in Des Moines, Indiana, Columbus, Kansas City, or Omaha if these markets appeal to you. 

Notes on sources:

• Top Midwestern cities for real estate investors taken from GOBankingRates.

• Population data taken from the U.S. Census Bureau.

• Unemployment rates taken from the U.S. Bureau of Labor Statistics.

• Average rent taken from RentCafe.

• Median days on market taken from FRED Economic Data.

Data on cost of living taken from Missouri Economic Research and Information Center.